What Happens If You Have a Joint Mortgage and Split Up?

It’s stressful going through a divorce or separation; that stress can multiply if you have a joint mortgage with your ex-partner.

However, if separate from your partner, plenty of options are available. You can buy them out, sell the house and split the proceeds or keep a share of the property while your ex-partner lives in it.

In this article, we’ll discuss what happens to a joint mortgage when you separate and the steps you need to take to ensure the process is dealt with amicably.

What should I do if I have a joint mortgage with an ex-partner?

If you have a joint mortgage with an ex-partner, you will own an equal share of the property with them. If you split up it means both of you have a right to continue living there and are both responsible for the mortgage repayments.

Keep up the mortgage repayments

This is vital. Even if your partner stops paying their share, you need to keep the payments up-to-date. This is because you become financially linked when you have a joint mortgage, so if you miss payments or fall into arrears it will affect the credit score of both you and your partner.

If you end up with bad credit or defaults, it may make it difficult to remortgage if you intend to buy out your partner’s share.

If you’re struggling to make the payments, speak to your lender as soon as possible. Depending on the terms and conditions of your mortgage agreement, they may be able to offer you a payment holiday, which might give you enough breathing space.

Bear in mind you will still pay interest and will have to make up the missed payments at the end of the mortgage term.

What are your matrimonial rights?

Your home is considered a joint asset if you live together as a married couple in the UK. This is the case even if there’s only one name on the deed.

As a result, no one can be forced to leave the property while you’re still officially together.

You can obtain a Notice of Home Rights (HR1) from HM Land Registry to prevent the home from being sold if it’s listed in your partner’s name. It’s important to remember this is only valid until you’ve agreed a divorce settlement.

If the mortgage was in one partner’s name before the two of you were married, the other person has less of a claim on the property unless there’s a prenuptial agreement in place that states otherwise.

What are your options if you split from your partner?

You have a few options if you split up with your partner and have a joint mortgage. Here are some of the things you can do:

Buy out your partner

One of the easiest solutions is to buy out your partner. This will depend on whether you continue to live in the house, but it’s an option if you have children, for example.

Once you’ve bought your partner out you can remove their name from the mortgage and put it in your name.

Sell the home and split the proceeds

Another easy solution if you split from your partner is to sell your home and split the proceeds between you.

It’s important to note you may have to split the debt between you if the amount owed is more than the value of your home.

As easy as it sounds, it’s not always the most straightforward decision, especially if children are involved. If one or neither of you is willing to sell the property, you might have to find another solution.

Keep a share in the property

If one of you is happy to move out but wants to retain a stake in the property, you can transfer part of the value to the other partner.

One of you will have a majority stake in the property but the other partner will receive a percentage of the profits when the property is sold.

Pay off what remains of the mortgage

If you only have a few years left until the end of your repayment period, it might make sense to continue making the repayments. Once you’ve paid off the mortgage, you can sell the home and split the proceeds.

Find a guarantor

If you’re looking to take over the entire mortgage but don’t meet the lender’s affordability criteria, you can get a guarantor mortgage if a family member can help you out.

Your guarantor signs a legal agreement stating they will cover the repayments if you can’t. Your guarantor will have to meet the lender’s affordability and other eligibility criteria for the mortgage to be approved.

Get a Martin or Mesher Order

You can take out a Martin or Mesher Order if you live in England or Wales. They help resolve family disputes in the event of a divorce and are issued by a court.

• Martin Order: A Martin Order allows one party to occupy the former matrimonial home for life or until they re-marry. They’re commonly used if no children are involved and useful if one party wants to delay the sale of the property.
• Mesher Order: A Mesher Order allows the sale of the property to be delayed until a certain date. Once that date is reached, the property will be sold and the proceeds will be split between the two parties. It allows one party to remain living in the house and is common if children are involved.

Can I Remove My Ex-Partner’s Name from the Mortgage?

Yes, you can apply for a transfer of equity so the property is transferred into your name only and your ex-partner’s name is removed. The process is easier if your ex-partner agrees, otherwise, you may have to consult a solicitor before you proceed.

You will have to apply for a new mortgage once the process is complete and you might not pass the lender’s affordability checks if they’re whether you can make repayments on a sole income.

A transfer of equity is not the only option you have, here are a few others you can take:

• Replace the person leaving the joint mortgage with someone else who can afford to make the repayments.
• Move home and downsize by selling the house and repaying the current mortgage. This will need the consent of your ex-partner as neither party can sell without the agreement of the other.
• Get a court order to remove your ex-partner from the title deeds but not the mortgage. They will still have to repay the mortgage but they won’t have any further claims to the property.
• Get a remortgage in your name only provided you pass the lender’s affordability checks.

Speak to a broker experienced in these cases

If you have any remaining questions about what happens to your joint mortgage or what you should do next, speak to a broker. They’ll be happy to discuss all your options and give you personalised advice.

An easy way to find a specialist with the right experience is to use our free broker-matching service. We’ll arrange a no-obligation chat with someone who regularly assists with situations like this and who can give you peace of mind. Just give us a call on 0808 189 2301 or contact us online.